NEW YORK, Sept. 12, 2019 /PRNewswire/ -- African Americans
want more for themselves and from corporate America, and they
express it with their dollars as they move through the consumer
journey, from brand awareness to purchase, as revealed today in
Nielsen's 2019 Diverse Intelligence Series (DIS) Report on African
Americans.
It's in the Bag: Black Consumers' Path to
Purchase explores the non-linear and uniquely
technologically driven road that African Americans follow to make
purchasing decisions, which ultimately maximizes both online and
in-person shopping options. This path highlights several
differences in shopping behavior and purchasing when compared to
the total U.S. population. The report also includes deeper insights
into how culture, socio-economics and business influences how, why
and what motivates African American spending in a special
co-authored section by advocate and media commentator Angela Rye, CEO and Principal of Impact
Strategies.
"At 47.8 million strong and a buying power that's on par with
many countries' gross domestic products, African Americans continue
to outpace spending nationally," said Cheryl Grace, Nielsen's Senior Vice President of
Community Alliances and Consumer Engagement and co-creator of the
DIS Report. "This year, we wanted to help brands and marketers
understand the multi-faceted process that Blacks take to buy the
products they buy. There are several drivers, but culture is at the
center of them all. Further, with their love for technology, they
are much more savvy and conscious consumers. They are as we say,
'woke.' They pay attention to how companies are speaking to them.
As they spend more, they want more for themselves and from the
brands they support."
Dating back to 2011, this is Nielsen's ninth report highlighting
the media consumption, purchasing habits, lifestyle interests and
economic advancements of African Americans. It is the third in a
theme, released by Nielsen this year following the comprehensive
purchasing processes of Asian American and Latinx consumers. Key
takeaways from It's in the Bag: Black Consumers Path to
Purchase include:
African Americans are welcoming recipients of advertising
across all channels. However, while the trends of the Black buying
power and over-indexing in spending continue to increase,
companies' investments to advertise to them have decreased.
- African Americans are more likely than the total population to
agree that advertising provides meaningful information on most
platforms, including mobile (42% higher), television (23% higher),
radio (21% higher) and the internet (18% higher).
- Advertising spend designed to reach Black consumers declined 5%
between 2017 and 2018.
Physical appearance reflects a sense of cultural pride and
self-expression in the Black community. This is evidenced by the
top spending priorities for African Americans from everyday soap to
luxury handbags.
- African Americans outspend the total market on personal soap
and bath needs by nearly 19% ($573.6
million).
- Men are making an impact with grooming habits, outpacing the
total market by 20% on toiletry items.
- Blacks are 20% more likely than the total population to say
they will "pay extra for a product that is consistent with the
image I want to convey."
- They are also more likely to say they shop at high-end stores
including Saks Fifth Avenue (63%), Neiman
Marcus (45%) and Bloomingdales (24%).
While online shopping grows, African Americans continue to
head to physical stores for the personal touch and feel
experience—but with more discerning eyes.
- More than half (52%) of African Americans find in-store
shopping relaxing, compared with 26% of the total population.
- 55% of Black consumers say they enjoy wandering the store
looking for new, interesting products.
- When shopping, African Americans are more influenced than the
total population by store staff (34% more likely), in-store
advertising (28% more likely) and merchandising (27% more
likely).
The "for us by us" trend of Black-owned brands is profoundly
impacting the African American path to purchase and consumer
marketplace. Black consumers support brands that align with their
lifestyles and values.
- African Americans dominate the ethnic hair and beauty aids
category, accounting for almost 90% of the overall spend.
- 42% of Black adults expect brands they purchase to support
social causes (16% higher than the total population).
- 35% of African American shoppers are more likely to agree,
"when a celebrity designs a product, I am more likely to buy
it."
- Procter & Gamble (P&G) is the largest advertiser in
African American media, spending more than a half-billion dollars
($544.3 million). Five of the top 20
baby care category products come from P&G's Pampers and Luvs
brands.
Soul food drives African American consumers' top grocery
purchases. These consumers are also passionate about the
environment, wanting to buy safe, locally sourced food
items.
- African Americans outpace the general market on: Quaker grits
($19 million); Louisiana Fish Fry
($11 million); Glory Greens (frozen
and fresh, $9.5 million combined) and
Jay's Potato Chips (nearly $2.7
million).
- 61% say produce is the most important category to buy local,
followed by bakery and prepared foods (56%), eggs (55%) and dairy
(52%).
- Blacks over-index the total population concerned about food
safety issues: antibiotic use in animal production (by 20%);
artificial ingredients (by 19%) and GMO crop development due to
climate change. The biggest worry is rising prices due to trade
tariffs (68% Blacks vs. 56% total population).
"Nielsen continues to unearth undeniable data and insights that
highlight both the agency and power of Black consumers, and the
plethora of opportunities that exist for companies that are focused
on nurturing and empowering how they move through the world," said
Jonathan Jackson, former 2019
Nieman-Berkman Klein Fellow in Journalism Innovation at The Nieman
Foundation for Journalism and member of Nielsen's African American
External Advisory Council.
Nielsen uses U.S. Census data to determine population estimates
that inform its U.S. panels and its understanding of consumer
behavior. Given the rapid diversification of the U.S. population,
an accurate census has never been more important. That's why
Nielsen has signed on as a 2020 Census Official Partner with the
U.S. Census Bureau and utilized census data to show the economic
and demographic impact of African American consumers. This is the
second time the company has leveraged this partnership for the
Diverse Intelligence Series, after the 2019 Latinx consumer report,
released in August.
For more data and insights, download It's In the Bag: Black
Consumers Path to Purchase at Nielsen's African American
community site. Nielsen invites consumers to weigh in on the
discussion using the hashtag #TruthBeTold on social media. Follow
Nielsen on Facebook (NielsenCommunity) and Twitter
(@NielsenKnows).
About Nielsen's Diverse Intelligence Series
In 2011, Nielsen launched the Diverse Intelligence Series, a robust
portfolio of comprehensive reports which focuses solely on diverse
consumers' unique consumption and purchasing habits. The series has
become an industry resource to help brands better understand and
reach diverse customers.
About Nielsen
Nielsen Holdings plc (NYSE: NLSN) is a
global measurement and data analytics company that provides the
most complete and trusted view available of consumers and markets
worldwide. Our approach marries proprietary Nielsen data with other
data sources to help clients around the world understand what's
happening now, what's happening next, and how to best act on this
knowledge. For more than 90 years Nielsen has provided data and
analytics based on scientific rigor and innovation, continually
developing new ways to answer the most important questions facing
the media, advertising, retail and fast-moving consumer goods
industries. An S&P 500 company, Nielsen has operations in over
100 countries, covering more than 90% of the world's population.
For more information, visit www.nielsen.com.
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SOURCE Nielsen